EGX reportedly studying new upgrade to trading system to address tampering concerns

Cairo – December 19, 2023: The Egyptian Exchange (EGX) will potentially be going through a comprehensive upgrade to its trading system and program, with its implementation expected for sometime next year, according to Ashraq Business.

Citing four unnamed sources, which it explained were heads of brokerage firms, the news outlet stated that EGX Chairman Ahmed El-Sheikh met with brokerage companies on Monday evening to discuss the upgrade.

The main objective will be to address concerns surrounding tampering with the auction session, a critical factor influencing the closing price. The development of the new program is part of efforts to enhance transparency and trust in the stock market.

El-Sheikh also shared with the companies that the stock market’s administration was working closely with the Ministry of Finance and the Central Bank of Egypt.

Additionally, the EGX is studying a potential T+0 system that would enable settling trades on the very day they are executed, meaning that traders will be able to buy and sell stocks within the same session.

Within the Egyptian capital market, 122 brokerage, mediation, and securities trading companies are currently active. Oversight for non-banking financial services, including the money market, financial leasing, factoring, real estate financing, and insurance, falls under the purview of the Financial Regulatory Authority.